Intuit Payroll Services: Basic vs. Enhanced vs. Full Service

There are 3 payroll services offered by Intuit; basic, enhanced and full service. The main difference between them is their payroll tax filing features. The primary benefit of using an Intuit Payroll service is the integration with QuickBooks Online; there is no data sync required which means that your financial statements will always be up-to-date after each payroll run.

With Basic Payroll, you can pay all W-2 employees via a payroll check or direct deposit and with the Intuit Enhanced Payroll, you can pay W-2 and 1099 employees and the ability to e-file and make your tax payments directly within the QuickBooks! QuickBooks will even auto-populate the tax forms. Get up to 70% off QuickBooks Online and Intuit Payroll.

Feature Comparison Table of Intuit Payroll Services

Below is a chart summarizing the features available in each Intuit Payroll Service and the cost:

Feature

Basic

Enhanced

Full Service

Monthly Cost

$25
+$2/per employee

$39
+$2/per employee

$99
+$2/per employee

Integrates with QuickBooks

✔

✔

✔

Pay W2 employees

✔

✔

✔

Pay 1099 contractors

✔

✔

Pay by check or direct deposit

✔

✔

✔

Print W-2’s

✔

✔

Electronically file W-2’s

✔

✔

Federal Tax Forms

✔

✔

State Tax Forms

✔

✔

E-file forms & E-pay taxes

✔

Tax forms and payments are made for you

✔

No penalties, guaranteed

✔

Payroll setup completed for you

✔

Year end forms included

✔

Intuit Basic Payroll

With Basic Payroll, you can pay all W-2 employees with a live payroll check or make direct deposit to their bank/financial institution at no additional charge. In a nutshell, that’s the extent of what you can do with the basic payroll service. Below is a screenshot of the Employee dashboard where you would run payroll.

Run payroll from the Dashboard of Employees in QuickBooks Online.

If you’re using QuickBooks and want to save time managing and processing payroll and benefits, you may want to consult the experts at SmartBooks. Their HR team will handle employee onboarding, changes, and terminations in payroll and benefits systems, regular payroll processing, annual benefits renewal, tax and more.

Intuit Basic Payroll Costs

When it comes to cost, the basic payroll subscription beats both the Enhanced and Full Service payroll hands down. Intuit Basic Payroll will run you $25 per month plus an additional $2 per employee per month (this fee applies to all payroll plans), compared to Intuit Enhanced at $39 per month and Full Service at $99 per month.

Who It’s Best For

The Basic Payroll service is generally best for those businesses who have a CPA or payroll professional who can take care of filing the appropriate federal/state payroll tax forms and tax payments when they come due. In addition, s/he will need to create W-2 forms to issue to employees at the end of the year. While QuickBooks does calculate payroll taxes, the basic payroll service does not include payroll tax forms or e-pay.

What’s Missing

Unfortunately you cannot pay 1099 employees with the Basic Payroll Service. This service is only available with Intuit Enhanced & Full Service Payroll.

Intuit Enhanced Payroll

Intuit Enhanced Payroll is what I call the all-in-one package that puts you (the business owner) in the driver’s seat. It includes all of the basic payroll features that the Basic service has plus the federal/state tax forms and the ability to e-file and make your tax payments directly in the software!

You can also create and issue W-2 forms for your employees.Unlike the Basic service, you can pay 1099 employees with the Intuit Enhanced Payroll service. QuickBooks will auto-populate the tax forms for you so that all you have to do is review them before you e-file.

Intuit Enhanced Payroll Costs

At a monthly cost of $39/per month (plus the $2 per employee/mo fee), Intuit Enhanced Payroll is $14 more per month than the Basic service. However, you don’t need CPA or payroll professional to file your taxes.

Who It’s Best For

Intuit Enhanced payroll service works best for businesses who currently manage their books in QBO with little to no issues. Within QuickBooks Online, you will see reminders of upcoming due dates to run your payroll and for tax forms/payment deadlines.

What’s Missing

The difference between the Enhanced Payroll Service and Full Service can be described in one word; responsibility. With Enhanced Payroll, you are responsible for making sure that all tax forms and payments are made on time. If they are not, you can expect to pay additional interest and fees as s result.

On the other hand, if you subscribe to the Full Service payroll, Intuit is responsible for filing and paying your taxes on time; if they are not they will cover any additional penalties that you incur.

Intuit Full Service Payroll

For those of you that have the dough, Intuit Full Service Payroll is similar to what most outside payroll companies like ADP and Paychex offer. However, the advantage is that Intuit Full Service offers is that it integrates with QuickBooks!

This white glove service includes running payroll, printing and mailing checks, processing direct deposit payments and completing all tax forms and payments by their due dates. The best part is if you incur a penalty due to late filing or an error made on your tax forms, Intuit will take full responsibility. At the end of the year, Intuit will create and issue W-2 forms to your employees and 1099 forms to your contractors!

Intuit Full Service Payroll Costs

While you will pay a steep $99 per month (plus $2 per employee/mo.),you only have one responsibility; provide the total hours worked for each hourly employee and Intuit will do the rest!

Who It’s Best For

Intuit Full Service Payroll is for small businesses who have a lot of employees and don’t want to hire a CPA or payroll professional to manage their payroll. This service will give you the peace of mind that your employees will be paid on time and that your payroll tax obligations will be taken care of.

What’s Missing

To be honest, there is really nothing missing in the Full Service Payroll option. As long as you provide the total hours worked for each employee, Intuit will take care of the rest.

Basic vs. Enhanced Payroll

Below is a summarized table comparing the six key differences between Basic & Enhanced Payroll:

Feature Comparison of Key Differences: Basic vs. Enhanced Payroll

Feature

Basic

Enhanced

Monthly Cost

$25
+$2/per employee

$39
+$2/per employee

Print W-2’s

✔

Electronically file W-2’s

✔

Federal Tax Forms

✔

State Tax Forms

✔

E-file forms & E-pay taxes

✔

When it comes to comparing Intuit Basic Payroll to Intuit Enhanced Payroll, besides a price difference of $14 per month (Basic is $25/month vs. Enhanced is $39 per month) which we’ve already discussed, here is info on the other key differences:

1. Print W-2’s

With Intuit Enhanced Payroll, you can print W-2 forms from directly within the software. After you run your last payroll for the year, Intuit will do the final calculations behind the scenes and walk you through the steps to review & print your W-2 forms when you are ready. Unfortunately the Basic Payroll does not come with the ability to print W-2 forms. Therefore, you will need to manually create W-2 forms using the payroll reports in QuickBooks.

2. Electronically File W-2’s

All W-2 forms must be electronically filed with the Social Security Administration (SSA) by Jan 31. With Intuit Enhanced Payroll, you can easily do this from within the software. However, if you have the Basic Payroll service, you will find instructions on how to electronically file your W-2 forms here.

3. E-File Federal/State Payroll Tax Forms

There are a number of federal/state tax forms that must be filed to report your payroll. The due dates can vary for each small business owner; but generally you will fall into a monthly, quarterly or annual report and pay cycle. To gain more insight into the required forms and due dates, check out our Small Business Payroll Guide. You will find a table that includes a list of payroll tax forms and due dates as well as other general payroll information.

When you set up your payroll in QuickBooks, you will provide info about your business that will determine how often you need to file and pay taxes. If you use Intuit Enhanced Payroll, all of your federal and state tax forms will be completed for you by the program!

All you have to do, is review the forms for accuracy and submit them electronically within the software.

While the Basic Payroll software does not include any of the required federal/state tax forms that you may need; you can still generate payroll reports in QuickBooks and use that information to manually complete all of the required tax forms.

4. E-Pay Taxes

Whether you use Intuit Basic or Enhanced Payroll, the software keeps track of the amount of payroll taxes that you owe. If you have Enhanced Payroll, you can electronically pay (e-pay) your tax obligations directly within the software.

However, if you use the Basic service, you can run payroll reports in QuickBooks to determine what your liability is; then you will need to set up electronic payments to the federal/state tax authorities by going directly to their website. To learn more about how this works, check out our payroll guide.

Enhanced vs. Full Service Payroll

Below is a summarized table comparing the key differences between Enhanced & Full Service Payroll:

Feature Comparison of Key Differences: Enhanced vs. Full Service Payroll

Feature

Enhanced

Full Service

Monthly Cost

$39
+$2/per employee

$99
+$2/per employee

E-file forms & E-pay taxes

✔

Tax forms and payments are made for you.

✔

No penalties, guaranteed.

✔

Payroll setup completed for you.

✔

Year end forms included.

✔

When it comes to comparing Intuit Enhanced Payroll to Intuit Full Service Payroll, besides a price difference of a whopping $60 per month (Enhanced is $39/month vs. Full Service is $99 per month) which we’ve already discussed, here is some additional info on the other key differences:

1. E-file forms & E-pay taxes

As mentioned previously, the Enhanced Payroll service includes all of the federal/state tax forms that you need to file. In the background, QuickBooks takes all of your payroll information and populates the appropriate fields on the tax forms so that you don’t have to! Once you are satisfied with your tax forms, you can submit your tax payments electronically within QuickBooks.

With Full Service Payroll, you don’t have to e-file your tax forms or e-pay your taxes because Intuit does it for you!

2. Tax forms and payments made for you

One of the reasons why Full Service Payroll is more than double the cost of Enhanced Payroll is because you are not responsible for creating paychecks, filing tax forms or making tax payments. Intuit takes that responsibility on for you; whereas with Enhanced Payroll you are solely responsible for all aspects of your payroll.

3. No penalties guaranteed

If you’ve ever been late on filing tax forms or making your tax payments then you know there is always a penalty and possibly some interest involved. The good news is if you have Full Service payroll, you don’t have to worry about coming out of pocket for penalties and interest on past due taxes; since Intuit is 100% responsible for filing payroll tax forms and making your tax payments they guarantee that they will file your federal/state tax obligations on time and if they don’t they will pay all interest and penalties assessed.

However, if you use the Enhanced Payroll service, you are responsible for filing tax forms and making tax payments on-time so if they are not you will have to pay any interest and penalties assessed.

4. Payroll setup completed for you

When you sign up for Full Service Payroll, you don’t even have to worry about setting up your payroll! Intuit will take care of that for you. All you will have to do is provide the necessary employee W-4 forms and other pertinent information they will need to set up each employee. You can find a complete payroll checklist in our QuickBooks Payroll Setup Guide.

5. Year-end forms included

As I mentioned previously, there are several payroll tax forms that must be filed at various times during the year; Form W-3 and Form 940 are just a couple of forms that are only filed on an annual basis. Another benefit to having Full Service payroll is these forms are filed for you; whereas if you use Enhanced Payroll the software will complete the forms for you but you will need to review them and e-file them by the deadline.

How to Get Started with Intuit Payroll

By now, I’m sure you are anxious to get your payroll up and running! If you already have a QuickBooks Online account, then simply log in and go to the Employee Center. If you have not signed up for a payroll service, then you will see instructions on how to do so.

If you previously signed up for a payroll service, then you will see a button that says “Set up your payroll”. Click that button and follow the on-screen prompts.

If your time is limited or you would prefer to leave payroll to the experts, SmartBooks could be a good option. They are a virtual bookkeeping service that has years of experience working with small businesses. They are certified QuickBooks ProAdvisors and can set up payroll and pay your employees each pay period, as well as sending invoices, paying bills, and more.

If you would like to provide us with your feedback, we would love to hear which service you decided to go with and why.

About the Author

Crystalynn Shelton

Crystalynn Shelton is a CPA and staff writer at Fit Small Business, specializing in small business Bookkeeping, Accounting, and Taxes. She is also an Adjunct Instructor at UCLA Extension where she has taught hundreds of small business owners how to setup and manage their books using QuickBooks for 8 years. Prior to joining Fit Small Business, Crystalynn was a Senior Learning Specialist at Intuit for 3 years and also ran her own QuickBooks consulting and training business. When Crystalynn isn’t writing or teaching, she enjoys rollerblading in Venice Beach and reading a good book.

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